Helium One Global Ltd has agreed a conditional £10 million investment for its projects in Colorado, USA and the southern Rukwa Basin in Tanzania.
ITUMBULA
Marex Financial arranged the financing involving three institutional investors who may convert the advance into ordinary Helium One shares at any time.
Helium One will repay any outstanding amount of the advance 12 months after the drawdown either in cash and / or shares.
The company also plans a retail offer for existing shareholders for up to £1m, to be used as working capital.
Shareholders are due to vote at a 5 August general meeting on the allotment and issue of ordinary shares for the investment and retail offer.
Of the total, £5m will be used at Rukwa, for which the company has now received a formal licence, and £4.5m to the 50-50 Galactica development in Colorado.
Operations continue with production and first cash expected from Galactica during Q4.
In the same quarter, Helium One plans further testing by re-entering the Itumbula West-1 well at Rukwa.
“A down-hole electric submersible pump will create artificial lift and flow helium at increased rates from the Basement and Karoo intervals,” said the company.
“This important step will enable the company to better understand the concentrations of helium in this unique helium play and further establish multi-rate flow tests, bringing us closer to finalising the development plan and subsequent processing plant,” added chief executive officer Lorna Blaisse.
Incorporation of the new joint venture company Songwe Helium Ltd for Rukwa is now complete with directors appointed.
The date is still pending for signing the regulatory agreements and the formal signing ceremony.